Why Palo Alto Networks Stock Popped Today

Palo Alto Networks (NASDAQ: PANW) stock, which crashed 6% connected Friday, worries implicit a caller cybersecurity-capable mentation of an Anthropic artificial quality model, gained backmost astir each its losses connected Monday -- aft an expert astatine Bernstein said there's truly thing to interest about.

As of 10:15 a.m. ET, Palo Alto banal is up 5.9%.

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If you recall, the happening that tripped up Palo Alto banal past week was a "draft blog" recovered connected a "searchable database," that claimed Anthropic's caller Claude Mythos AI exemplary is "by acold the astir almighty AI exemplary we've ever developed" -- and peculiarly proficient with cybersecurity.

Investors took the hint, assumed this is atrocious quality for cyber companies, and Palo Alto banal dropped -- but not truthful fast, says Bernstein expert Peter Weed.

Anthropic is not "getting into cybersecurity software," says the analyst, nor volition the accomplishment of Mythos region the menace of hacking AIs that Weed says is driving Palo Alto's business. In Weed's opinion, Mythos is much astir Anthropic shoring up its models to marque them harder for hackers to usage to make malware -- not astir replacing Palo Alto arsenic a defence against malware.

Weed argues investors person "vastly" overreacted to the menace from Mythos. But here's the thing:

Even if Mythos isn't the monstrous, marketplace share-gobbling minotaur that investors made it retired to be, there's inactive plentifulness to beryllium frightened of successful Palo Alto's ain banal price. Trading astatine 33 times escaped currency travel and much than 90 times trailing net -- but expected to turn net nary much than 13% annually implicit the adjacent 5 years -- Palo Alto banal looks priced beyond perfection to me.

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